Levels of Subsidy in Farm Income - Graph from Farm Business Survey

I predict my rent bill will fall by the amount of bps reduced because the land lords will have no alternative unless they want to farm it them selves but I can be certain if they do that they will make less than the rent I would be willing to pay
Aha rents will not fall as much but they often have houses and buildings and are at a lower rate

The farm land owners are going to take most of the hit

In preparation for 2020 and beyond unit cost control in continuing as it has since 1984 when the first reductions in farm surport hit since we joined the eec
 

Hilly

Member
I predict my rent bill will fall by the amount of bps reduced because the land lords will have no alternative unless they want to farm it them selves but I can be certain if they do that they will make less than the rent I would be willing to pay
Aha rents will not fall as much but they often have houses and buildings and are at a lower rate

The farm land owners are going to take most of the hit

In preparation for 2020 and beyond unit cost control in continuing as it has since 1984 when the first reductions in farm surport hit since we joined the eec
I bet it dosent, the amount of new machines etc etc etc etc oh an pickups etc etc says to landlords tenants have room to sweat it out a but more yet.
 
That's the big question, and thanks for posting the graph. (y)

I have participated in a few of these farm business surveys, and looked deeper into how they take a representative sample. I used the results to benchmark my business so I wanted to question their validity and credibility. I can promise you that they are statistically significant.

Yes, the graph shows aggregated data so there will be some very good businesses with data from some very poor ones too. There's a BUT in here - lots of businesses don't like paying tax on profits, so make sure that lots of costs go against trading profits. That might be shiny new machinery, a pheasant shoot, the kids' ponies or study tours to foreign countries.

Yes, it is very worrying when you take BPS out of the equation! Farms with high rents or high borrowings are going to suffer unless they change quickly when BPS goes post Brexit.

Here are my questions - What will you do to financially survive without the support mechanisms? How many farms are happy enough to break even in return for a nice lifestyle, lots of living costs buried in the books and something to get out of bed for each day? How much cost (and comforts) are you prepared to strip out of the business to stay in the black???

The answer is bunny hug and take as much green sub as possible. Poor land even for stock so no opting to farm out of the situation.
Couple of new projects on the go for diversification will know more on two years if successful.
Also main landlord is the N Trust who now have a new policy for greening their tenanted land so will look at their proposals with interest.
Have got development on some land we own so not worried too much about future finances and can play a bit before i retire.
For others perhaps just get over the big hp big willy syndrome and look to work with the soil not against.
 

Brisel

Member
Arable Farmer
Location
Midlands
I predict my rent bill will fall by the amount of bps reduced because the land lords will have no alternative unless they want to farm it them selves but I can be certain if they do that they will make less than the rent I would be willing to pay
Aha rents will not fall as much but they often have houses and buildings and are at a lower rate

The farm land owners are going to take most of the hit

In preparation for 2020 and beyond unit cost control in continuing as it has since 1984 when the first reductions in farm surport hit since we joined the eec

An instant £75-82/acre rent reduction? Good luck with that.
 
I predict my rent bill will fall by the amount of bps reduced because the land lords will have no alternative unless they want to farm it them selves but I can be certain if they do that they will make less than the rent I would be willing to pay
Aha rents will not fall as much but they often have houses and buildings and are at a lower rate

The farm land owners are going to take most of the hit

In preparation for 2020 and beyond unit cost control in continuing as it has since 1984 when the first reductions in farm surport hit since we joined the eec
hahaha you are in for a wake up call, if you are unprepared to pay similar to now you will be outbid simple as that theres no guarantee it will drop even 20% let alone 100, the landowner takes a rent from the highest bidder which is pure profit to him, the tenant has to pay rent then farm and make a profit so I don't see how landowners can loose??
 

unlacedgecko

Member
Livestock Farmer
Location
Fife
hahaha you are in for a wake up call, if you are unprepared to pay similar to now you will be outbid simple as that theres no guarantee it will drop even 20% let alone 100, the landowner takes a rent from the highest bidder which is pure profit to him, the tenant has to pay rent then farm and make a profit so I don't see how landowners can loose??

If the tenant can't make profit at the rent level then the rent will reduce or the tenant will go bust.

It make take a couple of years, but the market will correct itself.
 
If the tenant can't make profit at the rent level then the rent will reduce or the tenant will go bust.

It make take a couple of years, but the market will correct itself.
someone will take it and farm it even if the profit is tiny, basically once it corrects itself there will be even less profit for tenants, that's if some large farming company doesn't hover it up and spread costs over 1000s of acres
 

unlacedgecko

Member
Livestock Farmer
Location
Fife
someone will take it and farm it even if the profit is tiny, basically once it corrects itself there will be even less profit for tenants, that's if some large farming company doesn't hover it up and spread costs over 1000s of acres

Why would someone farm it for a tiny profit? Surely people will look at the return on investment, especially once the cushion of subsidy is removed. Do they have expansion for expansions sake in unsubsidised farming countries?

Economies of scale doesn't always work.
 
Why would someone farm it for a tiny profit? Surely people will look at the return on investment, especially once the cushion of subsidy is removed. Do they have expansion for expansions sake in unsubsidised farming countries?

Economies of scale doesn't always work.
because a tiny profit on a large number of acres is acceptable to them, also many people currently farming veg etc will grow grain on ground at a loss just to have the ground for he vege in the rotation, yes rapid expansion is what we have learned from those in NZ after subs went
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 79 42.0%
  • Up to 25%

    Votes: 66 35.1%
  • 25-50%

    Votes: 30 16.0%
  • 50-75%

    Votes: 3 1.6%
  • 75-100%

    Votes: 3 1.6%
  • 100% I’ve had enough of farming!

    Votes: 7 3.7%

Red Tractor drops launch of green farming scheme amid anger from farmers

  • 1,291
  • 1
As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
Top